The Tale of the Three Gardeners
We recently published a children’s book about investing. It’s called The Tale of the Three Gardeners — a bedtime story about three gardeners who each take a very different approach to growing a forest.
It’s free on Apple Books. If the idea that logical investing is simple enough to explain to a child resonates with you, it might resonate with the next generation too. A good way to start that conversation.
| Strategy | YTD |
|---|---|
| ── Top Performers | |
| Maximum Yield Strategy | 15.3% |
| Universal Investment Strategy 3x Leverage | 15.2% |
| Gold-Currency Strategy II | 12.3% |
| Universal Investment Strategy 2x Leverage | 9.9% |
| NASDAQ 100 Strategy | 8.8% |
| ── Rotation & Risk-Managed | |
| Top 3 Strategies | 6.9% |
| Leveraged Gold-Currency Strategy | 6.4% |
| Global Market Rotation Strategy | 5.9% |
| World Top 4 Strategy | 5.8% |
| Dow 30 Strategy | 5.7% |
| Enhanced Permanent Portfolio Strategy | 5.2% |
| Hedge Strategy | 5.1% |
| Global Sector Rotation Strategy | 4.9% |
| ── Slower Performers | |
| Moderate Risk Portfolio | 3.8% |
| US Market Strategy | 3.8% |
| Conservative Risk Portfolio | 3.4% |
| US Sector Rotation Strategy | 3.1% |
| Universal Investment Strategy | 2.9% |
| Aggressive Risk Portfolio | 2.8% |
| BUG Permanent Portfolio Strategy | 2.7% |
| Bond ETF Rotation Strategy | 2.0% |
| ── Watch | |
| Crypto & Leveraged Top 2 Strategy | −4.4% |
Performance based on signals issued by Logical Invest. Slippage and fees are not included.
Twenty-two out of twenty-three strategies posted positive returns in January. The single pullback—Crypto & Leveraged Top 2 at −4.4%—was due to holding a leveraged silver ETF amid the recent extreme correction in silver prices. This strategy is very risky, and although it delivered outstanding results of 120% in 2025, it should be treated with caution as it has experienced large drawdowns in the past of over 50%.
Gold’s January surge was extraordinary — its best start to a year since 1980. Central banks kept buying, ETF inflows surged, and geopolitical uncertainty pushed safe-haven demand higher. Silver followed, crossing $117. On the surface, a clear trend.
Interestigly, Silver’s recent parabolic rise indicates the late stage of a precious metals bull market—as historical patterns suggest, where silver often surges dramatically just before the cycle peaks. If so gold could face heightened risk of a sharp correction or reversal, potentially leading to substantial losses if holding large positions.
Gold remains a valid portfolio holding. But position sizing matters more than ever at these levels. A Bloomberg Commodity Index rebalancing in mid-January mechanically reduced gold’s weighting, which already introduced short-term selling pressure. If macro hedges unwind — or if equity markets stabilize — a correction could come faster than most expect.
The same logic applies to US equities. January brought the clearest rotation signal in months: small caps outpaced large caps, the Russell 2000 posted its strongest start since 2021, and international markets continued to attract capital. The MSCI All Country World ex-USA index returned over 29% in 2025 — more than double the S&P 500 — and that momentum carried into January. Investors concentrated in last year’s US tech winners are now carrying more risk than they realize.
So how do our strategies navigate this? They don’t predict. They measure. Each strategy ranks its holdings by risk-adjusted return on a regular schedule — weekly or bi-weekly depending on the strategy.
When gold’s relative performance drops below equities, capital rotates out automatically. When international markets outperform US stocks, the rotation strategies follow. When volatility rises, hedging mechanisms increase defensive exposure without abandoning profitable positions.
The rebalacing may be delayed but often this delay is beneficial in resisting short term panick selling. Eventually if the long term trend reverses the strategy will evetually adapt. The exit decision is already built into the rules. No one needs to guess when to sell.
You don’t need to predict when gold corrects, or when tech leadership resumes, or when the rotation reverses. You need a system that measures these shifts in real time and acts on rules you set in advance.
We wish you a healthy, fulfilling, and profitable February.